UpdateEurope December MEG contract settles at €970/t, down €83/t

14 December 2011 12:39[Source: ICIS news]

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?xml:namespace>LONDON (ICIS)--The European monoethylene glycol (MEG) contract for December has settled at €970/tonne ($1,260/tonne), a fall of €83/tonne from November, a producer and buyer involved in the deal said on Wednesday.

It was a “reasonable settlement,” according to the buyer of the initial settlement, and “within the range,” the seller of the second settlement said.

“Prices might have bottomed out, depending on polyester scenario. Our margins are under a lot of pressure and we need to do the maximum to support European suppliers,” the buyer said.

The producer said it would have liked to have seen a higher number, following its target of €985/tonne.

The other players involved have not yet commented. The contract was agreed on a free delivered (FD) northwest Europe (NWE) basis.